1. Refers to its decision on the Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16) which, among other adopted measures, required that the total funding approved for grant renewals for Low Income Countries be no less than 55% of any annual funding window (the “55% Rule”);
2. Acknowledges that the 55% Rule is intended to drive resources toward the places with the greatest need and least ability to address the three epidemics, and that existing policies, including the Policy on Eligibility, Counterpart Financing and Prioritization, already shape the Global Fund portfolio by directing resources and requiring middle-income implementing countries to contribute financial resources to the response;
3. Notes unintended consequences of the 55% Rule and some negative impact on achievement of the targets of the Global Fund Strategy and on vital programs targeted for the poorest people in lower middle-income countries; and
4. Directs the Secretariat to develop further analysis of the 55% Rule in consultation with the Strategy, Investment, and Impact Committee at its next meeting, with a recommendation to the Board before its November meeting. Until that time, the Board decides to freeze the implementation of the 75% ceiling on grant renewals funding for Lower-Middle Income Countries and above (including on the four approved grant renewals affected by its implementation).